Benefits

Bigger returns. A margin loan gives you more to invest and you have the potential for bigger returns.

Unlock the equity in your existing investments. Raise cash for investment purposes without having to sell your investments

Support your retirement goals. Investors may use a margin loan as a means of building their wealth for retirement.

Greater diversification of your portfolio Spread your investments across a broader range of assets to build a more diversified portfolio.

Margin lending can be tax-effective

Interest paid on your loan is generally tax-deductible.

Interest can be paid up to 12 months in advance and you may be able to get an additional tax deduction for the prepaid interest in the current financial year (subject to your ability to satisfy the tax prepayment rules).

By borrowing against your existing portfolio, you may increase the size of your investment without having to sell your existing portfolio and potentially create a capital gains tax event.

Australian shares often generate franked dividends, which yield imputation credits that may be used to offset other tax liabilities.

The Detail

TAX LAWS ARE COMPLEX AND MAY CHANGE OVER TIME, POSSIBLY WITH RETROSPECTIVE APPLICATION. YOU SHOULD CONSULT A TAX SPECIALIST OR YOUR FINANCIAL ADVISER REGARDING THE TAX CONSEQUENCES OF INVESTING IN A MARGIN LOAN

Conditions, fees and charges apply. These may change or we may introduce new ones in the future. Full details are available on request. Lending criteria apply to approval of credit products. This information does not take your personal objectives, circumstances or needs into account. Consider its appropriateness to these factors before acting on it. Read the disclosure documents for your selected product or service, including the Terms and Conditions or Product Disclosure Statement, before deciding. Unless otherwise specified, the products and services described on this website are available only in Australia from Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.